Councilman Proposes Overhauling Philadelphia Tax Abatement

PHILADELPHIA (CBS) – A city councilman is proposing a huge overhaul to the long-controversial 10-year property tax abatement in Philadelphia.

Under the current abatement, owners of new construction don’t pay any property taxes for 10 years. Supporters say the tax break has helped spur a lot of commercial and residential development. Critics say it’s unfair to longtime property owners facing reassessments.

At the opening meeting of Council’s fall session, Councilman Wilson Goode introduced a measure that would make two huge changes: it would be a five-year abatement that decreases annually from 100 percent down to 20 percent.

He says the original abatement’s benefits are unclear, “It’s generally a tax break for the few, the new, and the well-to-do, not for most of Philadelphia.”

Goode’s plan, if approved, would not take effect until 2014. It will be debated in committee.

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Mike Dunn is City Hall bureau chief for KYW Newsradio 1060. He covers the mayor, City Council, and every other aspect of the city’s political landscape.
Mike has been with KYW since 1990. His reporting specialties have also included keeping an eye...